There are many restrictions for foreigners in Thailand, including owning a business, and usually, foreigners are only allowed to own 49% of a company. The remaining 51% of ownership needs to be a Thai national, putting some people off setting up a business. However, there are ways that a foreigner can own 100% of the business without the need for Thai partners, and this is by setting up a BOI (Board of Investment) company.
Below are some tips and advice for doing this to help you get the ball rolling and set up and own a business in the Land of Smiles.
The Benefits Of A BOI Company In Thailand
There are many limitations on foreigners in Thailand, and when setting up a company, there are many hoops to jump through and lots of paperwork. However, you can negate many of these limitations when you set up a BOI business. There are also benefits you can enjoy. You can enjoy a reduction or exemption of corporate taxes, exemptions of import duty on machinery and raw materials, and exemptions of products for export. You are also allowed to own the business 100%, have a streamlined process for getting visas and work permits, and own land through the business.
Who Is Eligible For A BOI Business?
You must qualify for BOI company registration in Thailand, and not every business is eligible, so it is not open to everyone. It is essential to have the best BOI lawyer Bangkok can offer by your side to advise you and to ensure you are able to comply with all the requirements needed, making the application process more fast and smooth. There are eight categories of businesses that can qualify for BOI status, which are as follows:
- Light Industry
- Services & Public Utilities
- Chemicals, Paper, Plastics
- Metal Products
If your company is in any of these industries, then you may qualify for BOI status, but there are other restrictions in place. You will need minimum capital investment, have an acceptable debt to equity ratio, meet the set requirements, and is a new or existing company. If you meet all the BOI criteria, you can apply for BOI status and simplify running your business in Thailand significantly. However, the process can be drawn out and complicated, and it is best to get professional legal advice when registering your business under BOI.
Getting Professional Legal Advice
To make the process of applying for BOI status for your business or setting up a new company that qualifies for it hassle-free, you will need expert legal advice. You can use a professional lawyer’s services, and accountants can often assist with the process. The cost will vary depending on the law firm you use, so you will want to shop around and get the best deal possible. However, it can be worth spending a little extra money and hiring the services of a top law firm to assist you, which can sometimes speed up the process and be completed quicker.
Doing business in Thailand can be complicated, especially if you are not used to the bureaucracy that is in place in the country. Using the services of a reputable company to assist you in setting up your BOI business is the best way to get the job done quickly and help simplify the process for you.